Sheridan Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $3,220 an two jobs in process: Job No. 429 $1,840, and Job No. 430 $1,380. During May, a summary of source documents reveals the follow Job Number 429 430 (a) 431 General use (1) Materials Requisition Slips (2) 31 $2,300 (3) 31 3,220 (4) 31 4,060 $9,580 760 $10,340 Labor Time Tickets $1,760 2,760 Sheridan Company applies manufacturing overhead to jobs at an overhead rate of 60% of direct labor cost. Job No. 429 is comple during the month. No. Date Account Titles and Explanation May 31 7,000 Prepare May 31 summary journal entries to record (1) the requisition slips, (2) the time tickets, (3) the assignment of manufacturing overhead to jobs, and (4) the completion of Job No. 429. (List all debit entries before credit entries. Credit account tit are automatically indented when amount is entered. Do not indent manually.) $11,520 1,080 $12,600 Debit Credit
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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